Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance
• Human resources

Environmental Achievements

• Improved energy efficiency, reducing carbon emissions

Social Achievements

• Open recruitment policy regardless of gender, race, nationality, and religion
• Encouraged self-development and on-job training for staff

Governance Achievements

• Established Audit Committee, Nomination Committee, and Remuneration Committee
• Implemented Internal Control and Risk Management Committee and internal audit team
• Adopted Code of Ethics for directors and officers, Model Code for Securities Transactions, Code of Ethics for employees, Complaint Handling Procedure, and Whistleblower Protection Policy

Climate Goals & Targets

Environmental Challenges

• Fierce competition due to oversupply of transponder capacity
• Significant downward trend on lease price

Mitigation Strategies

• Strive to develop the transponder capacity business
• Improve value-added services in TV broadcasting, telecommunication, and data centre services to achieve synergic effects

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Stakeholders’ Rights
• Corporate Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions (details in the report, but not quantified in a single percentage or metric)
• Monitored and reduced employee business trips to lower transportation emissions
• Enhanced equipment performance to reduce electricity-generated carbon emissions
• Installed water-efficient faucets and other installations in the office to save water

Social Achievements

• Maintained a low employee turnover rate of 7.5%
• Provided annual body check-up benefits and organized recreation activities for employees
• Participated in community activities like elderly home visits and donation of HK$15,000
• Organized an Open Day for China Aerospace Science to promote aerospace and satellite knowledge

Governance Achievements

• Maintained high standards of corporate governance, including internal control and compliance
• Adhered to business code of ethics applicable to all directors, senior management, and employees
• Implemented whistleblower protection policy
• Established and maintained effective internal control systems

Climate Goals & Targets

Environmental Challenges

• Oversupply situation in the global satellite transponder market
• Decline in transponder lease prices
• Fierce market competition with price downward pressure
• Satellite launch risks
• Satellite in-orbit failure risks
• Fluctuation of Renminbi exchange rate against Hong Kong dollars
• Imminent gradual increase of interest rates
• Change of tax regime in revenue-generating countries
• Liquidity risk due to significant capital investment in satellite projects

Mitigation Strategies

• Actively exploring new markets and businesses
• Enriching service contents and varieties
• Implementing replacement satellite projects (APSTAR-5C and APSTAR-6C)
• Investing in an associate company for high-throughput satellite business
• Launch insurance policies to cover launch risks
• In-orbit insurance policies to cover operational failure risks
• Regular review of risk exposure due to exchange rate fluctuations and hedging measures
• Continuous assessment of hedging instruments for interest rate risk
• Seeking advice from tax consultants for global tax impact review
• Maintaining sound financial position and cash flow situation with internal resources, operating cash inflow, and available bank loan facilities

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance

Environmental Achievements

• Improved air emissions (SOX decreased by 15.50%)
• Improved water consumption intensity (decreased by 40.68%)

Social Achievements

• Maintained a diversified workforce (Open Employment Policy)
• Provided annual body check-up benefit and organised recreation activities for employees
• Made donation of HK$5,000 to fulfill social responsibility
• Organised Open Day for China Aerospace Science and arranged employee participation in five volunteer activities.

Governance Achievements

• Maintained strict corporate governance standards, including internal control and compliance
• Adhered to business code of ethics
• Implemented whistleblower protection policy

Climate Goals & Targets

Environmental Challenges

• Downswing in the satellite transponder market with sluggish demand growth and oversupply
• Price pressure due to market competition
• Non-renewal of contract by a main customer
• Satellite launch risks (APSTAR-6D)
• Satellite in-orbit failure risks
• Frequency licence risks (impact of 5G on C-band)
• Reliance on a few key customers or markets
• Fluctuation of Renminbi exchange rate against Hong Kong dollars

Mitigation Strategies

• Actively exploring new markets and businesses
• Enriching service contents and varieties
• Intensifying market development efforts
• Satellite launch insurance for APSTAR-6D
• In-orbit insurance policies for satellites
• Reduced transponders in potential affected frequency band and allocated more resources to Ku-band, Ka-band, and HTS transponders
• Planning for construction of backup earth stations
• Replacement satellites projects with advanced technology
• Strengthening sales resource allocation to expand market and customer base
• Establishing strategic cooperation to maintain long-term strong user relationships
• Regular review of risk exposure due to fluctuation of exchange rates and hedging measures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• Operational Compliance
• Quality Management
• Intellectual Property Protection
• Information Security
• Customer Service Management
• Customer Privacy Protection
• Radiation Management
• Employment Compliance
• Remuneration and Benefit

Environmental Achievements

• Slightly decreased NOX emissions and PM Emission by 0.17%
• Decreased water consumption by 10.36%

Social Achievements

• Maintained a diverse workforce with 25.5% female employees in 2021 (28.2% in 2020)
• Implemented COVID-19 preventive measures to protect employees
• Provided annual body check-up benefit to employees
• Conducted employee training programs, with 87.3% of employees receiving training in 2021 (90.9% in 2020)

Governance Achievements

• Maintained strict corporate governance standards, including internal control and compliance
• Implemented a whistleblower protection policy and Code of Ethical Business Conduct
• Conducted regular reviews of the effectiveness of internal control and risk management systems

Climate Goals & Targets

Environmental Challenges

• Oversupply situation and keen competition in the global and Asia Pacific region satellite transponder market
• Continued price pressure due to oversupply and competition
• Potential impact of 5G implementation on C-band frequency
• Risk of satellite launch failure and in-orbit failure
• Risk of default of contracts due to economic downturn

Mitigation Strategies

• Actively exploring new markets and businesses, enriching service contents and varieties
• Implementing APSTAR-6D project with advanced technology
• Reducing allocation of transponders in potentially affected frequency band and allocating more resources to Ku-band, Ka-band, and HTS transponders
• Planning for construction of backup earth stations
• Securing satellite launch insurance and in-orbit insurance policies
• Establishing strategic cooperation to maintain long-term strong user relationships

Supply Chain Management

Supplier Audits: Regular review and evaluation of approved suppliers

Responsible Procurement

• Fair procurement policy, compliance with relevant rules and regulations, internal controls and approval procedures

Climate-Related Risks & Opportunities

Physical Risks

• Attenuation of satellite antenna signal caused by rainfall, impact of strong wind on satellite antenna performance and safety

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Appendix 27 to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Compliance
• Employment Compliance
• Operational Compliance
• Air Pollutant Management
• Fleet Emissions Management
• Wastewater Management
• Greenhouse Gas Emission
• Waste Management
• Energy Consumption
• Use of Water Resources
• Green Energy Project
• Use of Raw Materials and Packaging Materials
• Ecological Protection
• Responding to Climate Change
• Prevention and Handling of Environmental Incidents
• Employees’ Remuneration and Benefits
• Employees’ Working Hours and Rest Period
• Diversity and Equal Opportunity
• Occupational Health and Safety
• Training and Education
• Prevention of Child Labour and Forced Labour
• Procurement Practices
• Quality Management
• Customer Health and Safety
• Responsible Sales and Marketing
• Customer Service Management
• Intellectual Property Protection
• Research and Development
• Information Security
• Customer Privacy Protection
• Anti-corruption
• Charity
• Promotion of Community Development
• Poverty Alleviation
• Radiation Management
• Managing Environmental Risks of Supply Chain
• Managing Social Risks of Supply Chain

Environmental Achievements

• Reduced total energy consumption by 6.0%
• Maintained electromagnetic radiation emissions significantly lower than the threshold value of 0.4 W/m2

Social Achievements

• Maintained a diverse workforce with a male-to-female ratio of 69:31
• Organized employee activities to promote work-life balance
• Provided annual body check-up benefits to employees
• No work-related fatalities occurred between 2021 and 2023
• 101 employees (93.5%) received training

Governance Achievements

• Maintained strict corporate governance standards, including internal control and compliance
• Implemented whistleblower protection policy
• Adopted a Code of Ethical Business Conduct
• Company Secretary completed more than 15 hours of relevant professional training

Climate Goals & Targets

Environmental Challenges

• Oversupply situation of transponders and significant price pressure in the satellite transponder market
• Fierce market competition from LEO operator Starlink
• Difficulties in customer payment due to economic downturn, fiscal budget tightening, strong US dollar, and foreign exchange shortages
• Potential impact of 5G implementation on C-band frequency
• Risks of satellite in-orbit failure

Mitigation Strategies

• Actively exploring new markets and businesses
• Enriching service contents and varieties
• Intensifying market development efforts
• Implementing APSTAR-6D project with advanced technology
• Strengthening sales resource allocation
• Establishing strategic cooperation to maintain long-term user relationships
• Taking out in-orbit insurance policies
• Cooperating with partners to build a resource coordination and mutual backup mechanism of satellites
• Reducing allocation of transponders in potentially affected frequency band and allocating more resources to Ku-band, Ka-band, and HTS transponders
• Planning for construction of backup earth stations

Supply Chain Management

Supplier Audits: Regular basis

Responsible Procurement

• Fair procurement policy
• Selection criteria including reputation, experience, financial status, service/goods effectiveness, delivery performance, post-sales support, and environmental factors
• Priority to suppliers with corporate green policies and those meeting national, regional, and industry environmental standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, rainfall, natural disasters)
• Attenuation of satellite antenna signals caused by rainfall
• Impact of strong winds on satellite antennas

Transition Risks

• Increasing emissions obligations and compliance costs

Reporting Standards

Frameworks Used: Appendix C2 to the Rules Governing the Listing of Securities on the Stock Exchange

Certifications: ISO-27001 (data center)